Calpine

Ben and Jinsung,

We have not had time to pass this information by the traders. If we resolve
the issues regarding location, unit contingency, etc., we can get a better
number from the traders. For now, these are indicative prices only. Once we
understand the deal better, we can talk to the traders and get a firmer
price. Also, Jim Fallon has requested that his traders receive a term sheet
prior to agreeing to a price.

Here is the information you requested, based on the assumptions sent in the
e-mail below:

Further assumptions:
180 MW
Priced at PJM East hub, no cost is added for any transmission
Must be called in 16 hour blocks
Total start costs: $1200 per start ($300 per turbine)
No escalation in VOM
95% availability

3 year capacity: $3.80 kw/mo
5 year capacity: $3.74 kw/mo

---------------------- Forwarded by Claire Broido/HOU/ECT on 02/23/2000 12:10
PM ---------------------------

Benjamin Rogers
02/23/2000 09:13 AM
To: Claire Broido/HOU/ECT@ECT, Jinsung Myung/Corp/Enron@Enron
cc: Thomas M Suffield/Corp/Enron@Enron
Subject:

Claire:
Here is the information for the Calpine project that we talked about
yesterday and that Jim Simpson sent you the e-mail about.

Hypothetical 4 LM 6000 Peaking Project in Eastern PJM
VOM: $2.23
H.R. 10,5000
Gas Curve: Transco Zone 6
Power Curve: East Hub Curve in PJM
Commercial Operations Date: 6/1/01

We are looking for a 3 and 5 year capacity number ($/kw-mo.) one number for
each time period. Please let me know if you need any more information
regarding the project. Thanks for your help.
Ben